Unfortunately for income investors, interest rates are currently at ultra-low levels and look unlikely to improve for some time to come.

The good news is that there are still plenty of ASX dividend shares that offer generous yields.

But which dividend shares should you buy? Here are two ASX dividend shares I would buy:

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust that owns a diversified portfolio of high quality agricultural assets across Australia. This includes macadamia orchards, cattle assets, cotton assets, vineyards, and almond orchards. These assets are leased to some of the most experienced agricultural operators in the country such as Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV). 

Thanks to its ultra long-term tenancy agreements and the inclusion of periodic rent increases, I believe Rural Funds is in a great position to continue growing its distribution at a solid rate over the next decade. Management has a target of ~4% distribution growth each year and looks set to deliver on this in FY 2021. It is forecasting an 11.28 cents per share distribution this financial year. Based on the latest Rural Funds share price, this equates to a 5.15% yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to consider buying is this telco giant. The Telstra share price has come under pressure this month following the release of its full year results. This is because its guidance for FY 2021 implies that there will be a dividend cut this year. While this is a distinct possibility due to its existing dividend policy, I would argue that its policy is out of touch with its current financials. This is because it is based on its accounting earnings, which is actually lower than its free cash flow.

A switch to a free cash flow based dividend policy would allow the company to maintain its current dividend if it delivers on its guidance. Analysts at Goldman Sachs believe this is likely to occur and have held firm with their estimate for a 16 cents per share dividend in FY 2021. Based on the current Telstra share price, this will mean a fully franked 5.25% dividend yield in 2021.

More reading

• 5 blue chip ASX 200 shares a beginner can use to start a share portfolio
• 2 ASX dividend shares with yields over 7%
• Why I would buy Telstra and this ASX dividend share today
• 3 fantastic ASX 200 shares for retirees to buy
• Afterpay and Mesoblast were among the most traded shares on the ASX last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Starting a portfolio of ASX 200 shares can be hard for a beginner investor. We Fools like to say that any new investor should aim to ramp to have at least 15 shares in their portfolios quickly as possible.

With this many investments, you can mitigate ‘single-company’ risk somewhat and start enjoying the benefits of a diversified portfolio. But which shares to choose?

Here’s a list of 5 ASX shares from the S&P/ASX 200 Index (ASX: XJO) that I think would make a great foundation for any beginner portfolio.

Telstra Corporation Ltd (ASX: TLS)

Telstra is the largest telco on the ASX and a staple company for thousands of ASX investors. I like it for a beginner for its strong dividend and future 5G growth potential.

Commonwealth Bank of Australia (ASX: CBA)

Owning an ASX bank used to be some kind of ‘rite of passage’ for ASX 200 share investors. But 2020 has been a tough year for the banking sector and the banks don’t elicit the same starry eyes as they used to.

Still, if you’d feel better with an ASX banking share in your portfolio, I think CBA is the pick of the bunch. It has managed to maintain a reasonable dividend this year and should recover in line with the broader economy over the next few years.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the largest conglomerates on the ASX and has a mindblowing portfolio of investments of its own. Not only does it own the Bunnings, Target, Kmart and Officeworks store chains, it also owns mines, chemical manufacturing facilities and a clothing line under its belt. Wesfarmers is a strong, stable company with a robust dividend and would not look out of place in any ASX portfolio in my view.

Woolworths Group Ltd (ASX: WOW)

Woolies should be familiar with most ASX investors. Not only does it own the eponymous supermarket chain, but Woolworths also owns a vast network of bottleshops and pubs, which include the Dan Murphy’s and BWS outlets. I like Woolworths as a conservative and defensive investment, and so I think it would make a great share for a beginner portfolio.

BHP Group Ltd (ASX: BHP)

Normally, I’m not too wild on mining shares for a beginner. But BHP’s proud history, massive size and diversified earnings base prompt me to make an exception. BHP has operations spanning coal, petroleum, copper and iron ore mining. The company is an ultra-low-cost producer, which means it stands to benefit if any of these commodities have a pricing boom. As such, I think the Big Australian is another great share to own in a diversified portfolio.

Foolish takeaway

I’m not saying these 5 ASX 200 shares are essential for a new portfolio, but I do think they are good places for a beginner to start with. You can choose all of them, some or none at all. As long as you aim to build up your portfolio with quality companies, you can’t go wrong!

More reading

• 2 of the best ASX dividend shares to buy next week
• 5 things to watch on the ASX 200 next week
• 2 ASX dividend shares for income investors to buy next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small weekly decline. The benchmark index lost 0.2% over the five days to end it at 6,111.2 points.

Another busy one is expected next week with a large number of major results due to be announced.

Here are five things that I think investors should be watching next week:

ASX futures pointing lower.

The ASX 200 is expected to start the week as it finished it. According to the latest SPI futures, the benchmark index is poised to open the week 11 points lower. This is despite a solid finish to the week on Wall Street with all three major indices pushing higher. The Dow Jones rose 0.7%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.4% higher.

Afterpay full year results.

The Afterpay Ltd (ASX: APT) share price was on form last week and reached a record high of $82.00. All eyes will be on its shares on Thursday when it releases its full year results. While its results have largely been pre-released (EBITDA of ~$44 million), investors will no doubt be interested to learn how it has fared in FY 2021 and whether it has any further expansion plans. Rival Zip Co Ltd (ASX: Z1P) will also be releasing its results on Thursday.

Flight Centre to report major loss.

The Flight Centre Travel Group Ltd (ASX: FLT) share price will be in focus on Wednesday when its eagerly anticipated full year results are released. The travel agent giant is expecting to report a significant loss after tax in FY 2020 because of the pandemic. It has provided guidance for a statutory loss of between $825 million to $875 million.

Fortescue tipped to declare a big dividend.

On Monday the Fortescue Metals Group Limited (ASX: FMG) share price will be on watch when the iron ore producer releases its full year results. Thanks to improving grades, sky high prices, and record shipments, Fortescue is expected to report a bumper profit result. As a result, analysts are forecasting a generous full year dividend. Macquarie, for example, has forecast a fully franked dividend of ~$1.80 per share for FY 2020. This represents a 10% dividend yield.

Tech star Appen to report half year results.

The Appen Ltd (ASX: APX) share price stormed to a record high of $40.93 last week. Investors appear to be betting on the artificial intelligence company reporting another strong half year result on Thursday. In May, Appen reaffirmed its full year guidance for underlying EBITDA in the range of $125 million to $130 million. Judging by its share price performance, investors may be optimistic that an upgrade is coming.

More reading

• These were the best performing ASX 200 shares last week
• Where to invest $100,000 into ASX shares right now
• These were the worst performing ASX 200 shares last week
• The ASX 200 fell 0.1% today, Suncorp shines
• Where to now for the NIB share price?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for a way to beat low interest rates, then the ASX dividend shares listed below would be worth considering.

I believe both dividend shares would be great options for income investors due to their generous yields and strong businesses. Here’s why I would buy them:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the resources sector, then I would suggest you consider buying BHP shares. This is because BHP owns and operates some of the highest quality assets in the world. It also has several growth opportunities, particularly in respect to oil production, that could create value for investors in the future.

Another positive is its low costs and favourable commodity prices. The latter is certainly the case with iron ore, with the steel making ingredient commanding a price of over US$120 a tonne at present. This means BHP’s iron ore operations are generating high levels of free cash flow. The majority of which I expect to be returned to shareholders. So much so, I estimate that BHP’s shares currently provide investors with a fully franked ~5% FY 2021 dividend yield.

National Storage REIT (ASX: NSR)

Another dividend share to consider buying right now is National Storage. I think the self storage operator could be a top long term option for income investors due to its strong market position and growth through acquisition strategy. And although the company is inevitably going to be impacted by the pandemic, I don’t believe it will be as bad as many of its real estate peers.

As a result, I’m optimistic National Storage will be able to continue paying shareholders a decent distribution during over the coming year. Based on the current National Storage share price, I estimate that it offers a 4.4% FY 2021 distribution yield.

More reading

• 3 top ASX200 dividend shares to buy right now
• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• How the OZ Minerals share price is benefitting at Rio Tinto’s expense
• Tech shares race to record highs as Bank of America tips BHP and Rio shares
• Why I would buy CBA and this ASX dividend share for income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think there are some ASX income shares which are must-haves for any investor that is focused on generating dividend income.

The official RBA interest rate is now just 0.25%. That has caused the income we can get from bank saving accounts to drop significantly.

I think there are some ASX shares that should be in most income investor portfolios:

WAM Microcap Limited (ASX: WMI)

WAM Microcap is a listed investment company (LIC). I really like LICs as ASX income share ideas.

When you limit yourself to just operating businesses that have a higher dividend yields then you may find that plenty of them offer average (or even inferior) total returns because they have low growth potential (and a low price/earnings ratio) and/or they have a high dividend payout ratio with limited re-investment opportunities.

LICs can invest in growth shares (or anything else), make capital gains and then pay out some of those returns as a smoothed (and hopefully growing) dividend.

WAM Microcap is one of the best-performing LICs. Since inception in June 2017, WAM Microcap portfolio’s gross return was 17.8% per annum. That’s before expenses, fees and taxes – so the net return has been a bit less. However, the gross portfolio return was 11.6% better per annum than the S&P/ASX Small Ordinaries Accumulation Index. That’s great outperformance.

The ASX income share has steadily increased its dividend since FY18 and it has also paid a special dividend each year too.

Excluding special dividends, WAM Microcap offers a grossed-up yield of 5.8% at the current WAM Microcap share price.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

In terms of dividend reliability, I think Soul Patts could be the best ASX income share around.

Soul Patts has grown its dividend every year since 2000. No other ASX share has a record as good as that. Soul Patts has actually paid a dividend every year since it listed in 1903, including through wars and other recessions.

The investment house owns large positions in a number of different shares including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), New Hope Corporation Limited (ASX: NHC), Milton Corporation Limited (ASX: MLT) and Bki Investment Co Ltd (ASX: BKI).

Most of Soul Patts’ investments pay annual dividends to Soul Patts each year. The ASX income share can then pay out most of those dividends to its own shareholders, after paying for expenses. It retains about a fifth of that net cashflow to invest into more opportunities.

At the current Soul Patts share price it offers a grossed-up dividend yield of 4.2%.

Future Generation Investment Company Ltd (ASX: FGX)

Future Generation is another LIC, but this one is very different to WAM Microcap. But I think it could also be a good ASX income share pick.

It invests in the funds of fund managers that invest in ASX shares. Its investment choices are meant to be into the best investment managers in Australia.

But those fund managers work for free for Future Generation so that the LIC can donate 1% of its net assets per annum to youth charities. That means no management fees and no performance fees. These donations are particularly important during times like this COVID-19 period.

Since inception in September 2014, the Future Generation portfolio’s gross return has been 2.2% per annum better than the S&P/ASX All Ordinaries Accumulation Index. That’s before expenses, fees and taxes.

Some of its biggest fund manager allocations are with Bennelong, Paradice, Regal, Eley Griffiths and Wilson Asset Management. Future Generation is invested in lots of shares through the underlying funds, so Future Generation has great diversification. 

At the current Future Generation share price it offers a grossed-up dividend yield of 6.8%.

Foolish takeaway

I think all three of these ASX income shares are great options for dividends. At the current prices I’d probably go for Soul Patts first with its reliable dividend – WAM Microcap appears to be trading at bit of a premium to its net tangible assets (NTA) now.

More reading

• Where to hunt for ASX dividend share income in 2020
• 3 Warren Buffett ASX dividend shares you can buy right now
• I think Soul Patts is the best ASX dividend share
• 4 ASX shares to profit from booming ecommerce
• 2 ASX shares you could invest $500 into

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for a little exposure to the small side of the market, then you’re in luck.

I believe there are a number of small cap ASX shares that have strong long-term growth potential.

Three which I think could be worth adding to your watchlist today are listed below. Here’s why I like them:

Alcidion Group Ltd (ASX: ALC)

I think this healthcare informatics solutions company is worth watching closely. It provides a number of software solutions which have been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Given the growing trend for healthcare organisations to shift to a paperless environment, I think it is well-positioned for long term growth once the pandemic passes.

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider which has achieved very strong sales growth in recent years. This has been driven largely by the increasing demand for its Dante product. This award-winning audio over IP networking solution is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. Unfortunately, demand for Dante fell materially during the pandemic, leading to an underwhelming FY 2020 result. However, given its strong balance sheet, industry-leading products, and significant market opportunity, I think it could be worth being patient with the company.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company that delivers innovative solutions to workforce challenges. It has also been disrupted by the pandemic, but still expects to deliver a strong full year result this month. In May the company suggested it would deliver normalised EBITDA in the range of $24 million to $25 million in FY 2020. This will be 35% to 40.5% increase year on year. So with its shares still down 44% from their 52-week high, I think it is definitely worth a closer look.

More reading

• Audinate share price drops 7% as coronavirus hits FY20 earnings
• Are these small cap ASX shares future stars?
• 2 exciting small cap ASX shares to watch
• Deepening partnership with Telstra fails to excite the Dubber share price
• 3 top ASX tech shares to buy right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd and AUDINATEGL FPO. The Motley Fool Australia has recommended Alcidion Group Ltd, AUDINATEGL FPO, and People Infrastructure Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It was a busy week for ASX share reporting. There were a number of interesting reports and there were a few that really caught my eye:

A2 Milk Company Ltd (ASX: A2M)

I really like see a business performing well. I think it’s kind of inspiring to see an ASX share do very well, particularly when it involves growing well on the global stage.

A2 Milk is one of those businesses that has performed exceptionally well for an extended period of time. It reported another excellent set of numbers in FY20.

If you didn’t read the full result, I’ll give you some of my highlights from it.

Total revenue increased by 32.8% to NZ$1.73 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 32.9% to NZ$549.7 million.

Net profit after tax (NPAT) rose by 34.1% to NZ$385.8 million with operating cash flow of NZ$427.4 million.

The business finished with a closing cash balance of NZ$854.2 million. Quite a bit of that cash is seemingly going to be used to acquire a controlling stake of Mataura Valley Milk. It’s looking to acquire 75.1% of it for NZ$270 million.

Infant nutrition revenue rose by 33.8% to NZ$1.42 billion. Chinese label infant nutrition sales more than doubled to NZ$337.7 million. A2 Milk is growing strongly in the US with revenue growth of 91.2% to NZ$66.1 million. Distribution has now reached 20,300 stores, up from 17,500 stores at the end of December 2019.

I think A2 Milk could be one of the best ASX share mid-caps to own over the next five years.

JB Hi-Fi Limited (ASX: JBH)

When I think about which ASX blue chip is nailing it right now, it has to be JB Hi-Fi. The business has continually surprised and impressed me over the past five years. The FY20 result was no different. In the middle of a global pandemic and a recession, you wouldn’t think JB Hi-Fi would be one of the ASX shares that would do really well.

But it has done very well.

Total sales grew by 11.6% to $7.9 billion. Underlying earnings before interest and tax (EBIT) rose by 30.5% to $486.5 million. Underlying net profit after tax (NPAT) rose by 33.2% to $332.7 million and underlying earnings per share (EPS) increased by 33.2% to 289.6 cents. Statutory net profit rose 21% to $302.3 million.

JB Hi-Fi’s board decided to increase the final dividend by 76.5% to 90 cents per share. That brought the total FY20 dividend up to 189 cents, an increase of 33.1%.

I like that the ASX share rewarded its employees with $1,000 given to full-time employees (and pro-rated for part-timers and casuals).

The July 2020 sales update was also really strong. For the month, total sales growth was 42.1% for JB Hi-Fi Australia, 9.1% for JB Hi-Fi New Zealand and 40.4% for The Good Guys. At the time of the result, August sales were also “strong”.

Redbubble Ltd (ASX: RBL)

Independent artist marketplace business Redbubble also really impressed with its result this week.

Marketplace revenue increased by 36% to $349 million. Gross profit increased by 42% to $134 million.

Operating EBITDA, which excludes non-cash share-based payments, currency, lease accounting changes, depreciation and amortisation, went up 141% to $15.3 million. EBITDA went up 358% to $5.1 million.

The ASX share reported that it generated free cash flow of $38 million in FY20.

In the fourth quarter of FY20 Redbubble reported revenue growth of 73% to $103 million. Gross profit rose by 88%. In the last quarter of FY20 it made $8.4 million of operating EBITDA and $7.4 million of EBITDA.

In FY21, July marketplace revenue grew by 132% and a similar sales level in the first two weeks of August.

Foolish takeaway

All three of these ASX shares reported strong growth despite the difficult conditions. I’m not sure I’d buy JB Hi-Fi shares because I’m not sure how long this type of performance can last – but I’ve been wrong before! However, A2 Milk and Redbubble both still look like buys to me for the long-term.

More reading

• Is the A2 Milk share price still a good buy after strong full year results?
• The ASX 200 fell 0.1% today, Suncorp shines
• ASX 200 flat: Suncorp surges higher, A2 Milk acquisition plans, TPG’s half year update
• Why a2 Milk, Coca-Cola Amatil, Star, & Suncorp shares are charging higher
• Meet the latest ASX stock that’s more than doubled its full year COVID-19 earnings

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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How much money can you actually make from investing in ASX shares? It’s a question many potential investors want to know – and fair enough too. Investing requires you to invest your own precious capital, the fruits of your labour. Because of the volatile nature of the share market, this can be very difficult. It’s never much fun to wake up and see the $2,000 you’ve invested is now worth $1,800.

So, here’s how I like to think of it. Investing is a long-term game. If you think it’s all about finding that one rocket share that will turn your $2,000 into $3,000, $4,000 or $10,000 by next week, I would recommend hitting the casino instead. That way, you’ve got similar odds but no brokerage to worry about.

In all seriousness, one of the biggest misconceptions that I hear about the share market is that it’s no different from gambling. But a long-term strategy couldn’t be any further from a game of blackjack.

ASX shares and compound interest

Put simply, successful investing is about harnessing the power of compound interest. That’s interest earning interest earning interest. It’s what Einstein supposedly called the ‘eighth wonder of the world’. The benefits of compound interest are hard to see initially, but overwhelmingly obvious (and FOMO-inducing) before too long.

Let’s illustrate. If a portfolio earns a return of 10% per annum, it will roughly double in value every 7 or so years (going by the rule of 72). Now a double is a double, no matter the value of what you are doubling. Going from $1,000 to $2,000 over 7 years doesn’t sound too exciting. But going from $100,000 to $200,000? Starting to get somewhere.

What about $200,000 to $400,000? Or $400,000 to $800,000? Once you start going from $800,000 to $1,6 million, and then $3.2 million, you can start to appreciate the awesome power of compound interest. Legendary investor Warren Buffett wasn’t a billionaire until he was more than 50 years’ old. Today (40 years’ later), the man is worth roughly US$79 billion. That’s compounding at work for you.

So when you’re thinking about how much money you can potentially make from ASX shares, it’s all about the rate of return you can receive. If you manage 10% per annum on average, your portfolio can be expected to double in size every 7 years. If you make 12%, it will double every 6 years. 15%? Every 4.8 years.

So how can you manage returns like these? Well, it’s not as hard as you might think. Simple passively managed exchange-traded funds (ETFs) will always give you the performance of the share market as a whole. The Vanguard Australian Shares Index ETF (ASX: VAS) simply holds the largest 300 companies on the ASX, all in one fund. Since it’s inception in 2009, holding this one investment would have returned you an average of 8.18% per annum.

Over the past 10 years, the United States markets have done even better. Holding an S&P 500 index fund (tracking the largest 500 companies in the US) like the iShares S&P 500 ETF (ASX: IVV) has returned an average of 16.38% per annum over the last 10 years. These numbers don’t indicate that these returns will continue forever. But it’s a good place to start in my view.

Foolish takeaway

Of course, outperforming these market-tracking ETFs can be difficult. But we Fools think anyone with the right mindset and dedication can do it. So if you’re wondering how much money you can make from investing in ASX shares, the sky is the limit. But the earlier you start, the more time you have for compounding to ‘do its thing’. So what are you waiting for?

More reading

• 2 ASX ETFs I would buy for growth and income
• Is now a good time to buy Magellan shares?
• 3 tips for beginners investing in ASX shares
• 2 ASX shares I would buy for growth and income
• Is the Vanguard Australian Share ETF the best long-term ASX investment?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) ended its winning streak last week with a small decline. The benchmark index recorded a 0.2% weekly decline to end the period at 6,111.2 points.

Four shares that didn’t let that hold them back are listed below. Here’s why they were the best performers on the ASX 200 last week:

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price was the best performer on the ASX 200 last week with a 40% gain. Investors were fighting to buy the logistics solutions company’s shares after it overcame COVID-19 headwinds to deliver a strong full year result for FY 2020. WiseTech Global recorded a 23% increase in revenue and a 17% lift in EBITDA. Looking ahead, management provided very positive guidance for FY 2021. It expects its EBITDA to increase between 22% and 42%.

IDP Education Ltd (ASX: IEL)

The IDP Education share price wasn’t that far behind with a 31.6% gain over the period. The catalyst for this was the student placement and language testing company’s strong full year result. Despite the pandemic, IDP Education posted a 2% decline in revenue to $587.1 million and an impressive 29% increase in EBITDA to $148.6 million. The latter was driven by excellent cost control.

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price was on form and charged 29.3% higher last week. This appears to have been driven by a bullish broker note following its full year results. Analysts at Macquarie upgraded the engineering company’s shares to an outperform rating with an increased price target of $11.57.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price was a strong performer last week with a gain of 20.9%. Investors were buying the corporate travel specialist’s shares following the release of its full year results. Although the company reported a loss of $8.2 million, a better than expected performance in July got investors excited. Corporate Travel Management revealed that its bookings in July were greater than in June. It feels this suggests a broad-based recovery in corporate travel activity is underway.

More reading

• These were the worst performing ASX 200 shares last week
• WiseTech and 2 more ASX shares outperforming this earnings season
• The ASX 200 fell 0.1% today, Suncorp shines
• Where to now for the NIB share price?
• Why the Corporate Travel share price is up 57% in August

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These were the best performing ASX 200 shares last week appeared first on Motley Fool Australia.

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If you’re in the very fortunate position of having $100,000 in a savings account and have no immediate use for it, I would suggest you consider putting it to work in the share market.

Especially given how most major banks are offering savers base interest rates of just 0.05% with their savings accounts at present.

This means that even with $100,000 in one of these saving accounts, you would only gain an incredibly pitiful $500 of interest each year.

Why the share market?

The Australian share market has generated an average return of 9.2% per annum over the last 30 years.

If the market were to do the same over the next 12 months, an investment of $100,000 would generate a return of $9,200 on your investment. That’s a difference of $8,700.

But why stop there? If you’re able to keep these funds invested for longer, they could potentially grow notably larger.

For example, a $100,000 investment earning 9.2% per annum for 10 years would be worth $241,000 at the end of the period.

Keep these funds invested for 20 years and it’ll be worth $580,000 if you average that same return each year.

But where should you invest these funds?

I think the three ASX shares listed below would be great options for these funds and could even provide stronger than average returns for investors.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider. I believe it could be one of the best buy and hold options on the ASX due to the Internet of Things and artificial intelligence booms. These markets are underpinning the proliferation of electronic devices globally and supporting strong demand for its award-winning software.

Appen Ltd (ASX: APX)

Another option to consider is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the strong growth of these markets and its leadership position, I believe Appen is well-placed to deliver strong growth over the next decade.

ResMed Inc. (ASX: RMD)

Another top ASX share to consider investing these funds into is ResMed. It is a medical device company which is focused on the sleep treatment market. I believe the company is well-positioned to deliver strong long-term earnings growth thanks to its industry-leading products and significant market opportunity.

More reading

• Where to invest your Commonwealth Bank dividends in September
• 3 stellar ASX growth shares to buy in FY 2021
• Top brokers name 3 ASX 200 shares to buy today
• Is the Altium share price a buy?
• The Appen share price just soared to an all-time high. Is it a buy?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Where to invest $100,000 into ASX shares right now appeared first on Motley Fool Australia.

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